When you subscribe we will use the information you provide to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer. OurPrivacy Noticeexplains more about how we use your data, and your rights. You can unsubscribe at any time.

The sale of John McGinn has helped Hibs record a pre-tax profit of £2million in their latest financial results.

New owner Ron Gordon has revealed his delight at the financial position of the club but admitted a big part of it was down to the money he put in when buying from Sir Tom Farmer last July.

The American put £3.5m into the coffers and left the club with an impressive £5.5m in the bank for the financial year ending on July 2, 2019.

Gordon updated shareholders in a letter ahead of the February 26 AGM, where he will elaborate on his vision for the Easter Road outfit, and outlined that Scotland midfielder McGinn’s £2.75m transfer in summer 2018 was critical to the club being in a healthy position.

Gordon said: “Two very significant transactions; the sale of John McGinn to Aston Villa and my acquisition of the majority shareholding of the club provided support for the financial results and position of the club.

"The £2.8 million gain on player trading led to a pre-tax profit of £2 million.

]

“As part of my acquiring the major shareholding, we paid off the club's £2.25 million mortgage and put a further £1.25 million into the club's bank account.

“As a result, we ended the year in a very strong financial position, with a cash balance of £5.5 million and no debt.

“It's worth noting that without the McGinn money, the club would have made a significant loss.”

Moving forward, however, Gordon, who has a background in banking and broadcasting, has made it clear he will not be content with just simply trying to make ends meet.

He said: “Losses drain resources and weaken us. Breaking even leaves us static. Progress will be based on generating funds that we will entirely use to reinvest in our club, making our team stronger and more successful.

“I was surprised at how many clubs in Scotland aim to just "break even". For me, a strong and sustainable club can only be built on a strong business - and that means one that generates profit that we can reinvest in our football team; that will gain us more sustainable success, one that will drive more happy supporters back to the club, which in turn will help us continually become stronger.”

(Image: SNS)

Gordon has already overseen one major change at the helm after Hibs replaced head coach Paul Heckingbottom with Jack Ross last November and he believes the supporters will be excited about his plans for the club.

He added: “I hope I have already demonstrated that I am prepared to invest in taking our club forward.

“Buying the major shareholding and eliminating the mortgage and injecting additional capital into the club are important foundational steps but I'm prepared to invest further - whether that's supporting recruitment of players or enhancing the match day experience for fans.

“I've spent the first six months learning, asking many questions, and taking a good look at all aspects of our club - working closely with Leeann (Dempster, chief executive), the board and the management team in developing a strategic plan to guide our vision and actions for the next several years.

“We're excited about the vision we have created for the club, and I hope that you will be too.”